On the eve of the 2024 US election, it may usher in the worst economic collapse since the Great Depression. As Election Day approaches, Wall Street is experiencing a financial storm. Economists warn that the United States may be facing its worst economic crisis since the Great Depression. The crisis will affect not only the U.S. economy, but also global financial markets, with far-reaching implications for the world economy.
Since the outbreak of the pandemic, the U.S. government has adopted a series of loose monetary policy and fiscal stimulus measures to cope with the impact of the pandemic on the economy. However, these policies led to higher inflation and soaring prices in the United States. At the same time, the Fed continues to raise interest rates in response to inflation, increasing the risk of a recession in the US economy.
At present, the United States is facing a serious debt problem. As the federal government's debt ceiling continues to approach, Congress must act quickly to raise the debt ceiling to avoid defaulting on the government debt. However, in the current political climate, the widening differences between the two parties over fiscal issues have led to an impasse in negotiations and a possible shutdown of the US government.
In addition, the recent increase in volatility in the US financial market, the collapse of the stock market, the erosion of investor confidence, the market fears that the US economic collapse may trigger global financial market turmoil, further weakening the foundation of the world economic recovery.
At this critical juncture, governments and central banks need to pay close attention to the dynamics of the U.S. economy, strengthen international cooperation, and jointly address the risks that may arise. At the same time, the U.S. government must take decisive steps to stabilize the domestic economy and avoid a Great Depression-style catastrophe.
As the 2024 election approaches, the political struggle in the United States is becoming increasingly fierce, and economic issues will become the focus of voters' attention. How will the United States respond in this storm? What challenges will the world face? It deserves our high attention.